Oct 12th 2011, 21:54 GDI GDInc.
by Telexa Gabardini
GDI 3rd Quarter Financial ReportGreetings Shareholders,
I am happy to report that GDI had it's most profitable 3rd quarter ever this year. Were it has become the norm for companies in Second Life to suffer through the summer months of the 3rd quarter, GDI actually seen an increase in profitability this year. We profited a total of $467,600 more in 3rd quarter 2011, then we did in 3rd quarter 2010. This profitability came from the restructuring as well as updates to some of our islands. We are continuing to update our content on our islands which ultimately keeps our occupancy rate in the mid 90% range.
Over the third quarter a issue i continually ran into was the fact that i had to turn potential profits away. This came by the way of a couple different forms. The first problem we are having is, not having the amount of prims, and or land desired by new or existing tenant wanting to upgrade. In the past, 99% of the time i was able to shift some tenants around to accommodate either a new one or one looking to upgrade. Because of the very high retention rate of occupants for GDI this has become ever increasingly difficult to accomplish. With that said i have had to refer these potential and or existing tenants out to other companies. Thus loosing profits. Secondly, i have had to pass up some great opportunities on sim purchases on the secondary market over the last few months that would have ultimately alleviated the first problem and increased both profits and total assets for GDI and it's shareholders. With the economy in it's continued downturn and effecting many people of all walks of life, people are selling off their sims and moving to just renting. Also Second Life has seen a growth in new users over the last quarter adding to the need for land rentals. These are both good opportunities to increase GDI's land holdings as well as profits. However i like to keep about 10% of GDI's total quarterly expenses as cash on hand, i choose not to purchase more sims.
With that said, i have been considering releasing approximately 20% of my current shares out to a SPO. I would like to create a working capital that i can pull from should the opportunity present it's self for more profits for GDI. The winter months are upon us and this has always resulted in a higher demand for land. Along with the shift of people moving from sim ownership to renting i feel this is a good opportunity for GDI and a great time to take advantage of the low price sims that come on to the secondary market daily. In the coming days i will have, and post more information regarding the potential SPO and when it would expect to start. Also having more shares on the open market will i hope alleviate the large swings in price per share GDI has seen over the last 5-6 months. Recently though we have seen a more stable price in the $7-9 a share range, which is still 55-65% below book. Ultimately having more share out should increase trading volume as well as price per share. Thus leading to more profits for traders.
Below is an excerpt of the financials, as well as a link to a more detailed page for your viewing.
Company Assets: $15,986,215
Total Revenues: $8,257,975
Total Expenses: $7,780,560
Retained Earnings: $477,415
Outstanding Shares: 800,00
Market Price: $8.99 (9/30/2011)
Earnings per share: 3.29
Cash earnings per share: 2.39
Price/Earning ratio: 2.73
Book Value per share: $19.98
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